How I Charge $2,500 Per Month For Bookkeeping đ± AP + AR Management
Summary
TLDRZach Pascarell shares insights on elevating bookkeeping services to charge over $2,000 per month. With a focus on QuickBooks Online expertise, he outlines his basic bookkeeping package, including transaction categorization, account reconciliation, and financial reporting. Zach then introduces 'cash management' as an advanced service, encompassing accounts payable and receivable management, offering hands-on bill payment and invoice generation, setting a foundation for higher-value bookkeeping services.
Takeaways
- đ Zach Pascarell is a bookkeeper who has been running his own business for four years and currently has over 60 clients.
- đŒ Zach makes more than $30,000 per month in recurring revenue from his bookkeeping services.
- đ Zach specializes in bookkeeping using QuickBooks Online, which allows him to be highly efficient and process a large volume of work.
- đ He charges more than $2,000 per month for his services by going beyond traditional bookkeeping and offering additional services like cash management.
- đŠ Zach's basic package includes categorizing transactions, reconciling accounts, and generating financial reports using QuickBooks Online.
- đł Cash management involves managing clients' accounts payable and accounts receivable, which goes beyond standard bookkeeping services.
- đ For accounts payable, Zach pays bills for clients using their money, requiring communication from the client about which bills need to be paid.
- đŒ Zach uses clients' business checking accounts to pay bills, either through direct deposit or by electronically mailing checks, depending on the vendor's setup.
- đ For accounts receivable, Zach handles sending invoices to customers and clients, using QuickBooks Online as a payment processor.
- đ QuickBooks can be set up to send automatic reminders for overdue invoices and can generate accounts receivable aging reports.
- đ° Zach charges $500 for managing about 100 accounts payable per month and suggests a starting point of $5 per bill for pricing this service. For accounts receivable, he charges an additional $200 for sending about 15 invoices per month.
Q & A
What is the main focus of Zach Pascarell's bookkeeping business?
-Zach Pascarell's bookkeeping business focuses on providing expert bookkeeping services using QuickBooks Online, with a specialization in the software and services offered rather than a specific industry niche.
How long has Zach been running his bookkeeping business?
-Zach has been running his bookkeeping business for the past four years.
What is the significance of having over 60 bookkeeping clients for Zach's business?
-Having over 60 bookkeeping clients signifies that Zach's business is well-established and successful, generating more than $30,000 per month in recurring revenue.
What is the basic package offered by Zach's bookkeeping services?
-The basic package includes bookkeeping with QuickBooks Online, which involves categorizing transactions, reconciling accounts, and generating financial reports.
Why does Zach only offer bookkeeping services and not payroll or taxes?
-Zach chooses to specialize only in bookkeeping services to maintain his expertise in the area and to be able to charge a premium for his specialized knowledge and efficiency.
What is the concept of 'cash management' as described by Zach?
-'Cash management' refers to the service where Zach manages clients' accounts payable and receivable, which goes beyond traditional bookkeeping by dealing with transactions that haven't occurred yet.
How does Zach handle accounts payable for his clients?
-Zach handles accounts payable by entering bills into QuickBooks Online in real-time, running an accounts payable aging detail report weekly, and paying the bills due within the next 7 days using the clients' business checking accounts.
What method does Zach use to pay bills on behalf of his clients?
-Zach uses the clients' business checking accounts to pay bills, either through direct deposit or by electronically mailing checks, after obtaining approval from the clients.
How does Zach manage accounts receivable for his clients?
-Zach manages accounts receivable by sending invoices to customers, setting up automatic reminders for due payments, and running accounts receivable aging reports to keep track of overdue invoices.
What are the additional services that Zach offers to justify charging more than $2,000 per month for bookkeeping?
-The additional services include cash management, which encompasses handling accounts payable and receivable, and providing a high level of expertise and efficiency in using QuickBooks Online for bookkeeping tasks.
How does Zach price his cash management services for accounts payable and receivable?
-Zach does not have a fixed pricing model but provides a starting point of approximately $5 per bill for accounts payable and $100 for handling about 10 invoices per month for accounts receivable, adjusting the price based on the volume of work.
Outlines
đ Expert Bookkeeping Services with QuickBooks Online
Zach Pascarell, a seasoned bookkeeper with a four-year track record, introduces his successful bookkeeping business model. He emphasizes specializing in QuickBooks Online, which allows him to efficiently manage over 60 clients and generate substantial recurring revenue. Zach's niche is not industry-specific but rather focused on the software and services he provides, positioning him as an expert in bookkeeping. His basic package includes transaction categorization, account reconciliation, and financial report generation, all within QuickBooks Online. He also offers advanced services like cash management, which involves handling accounts payable and receivable, setting him apart from traditional bookkeeping services.
đŒ Cash Management: Advanced Bookkeeping Beyond Transactions
This paragraph delves into the concept of cash management, an extension of bookkeeping services that involves active management of accounts payable and receivable. Zach explains how he uses his clients' business checking accounts to pay bills and manage invoices, streamlining the process with the help of online banking features. He details the process of setting up a system for bill payments, including the use of cloud storage or email for communication between the bookkeeper and the client. Zach also discusses the use of two-factor authorization for added security and accuracy in payment processing. He provides a pricing example for this service, charging $500 per month for managing around 100 accounts payable, highlighting the hands-on nature and responsibility involved in this advanced service.
đ Managing Accounts Receivable for Timely Payments
Zach continues the discussion on bookkeeping services by focusing on accounts receivable management. He outlines the process of creating and sending invoices to clients, utilizing QuickBooks Online as a payment processor. The paragraph covers the ease of setting up automatic reminders for clients to make payments and the use of aging reports to track overdue invoices. Zach also mentions the convenience of electronic payments through bank transfers or credit cards, facilitated by QuickBooks. He shares a pricing example for managing accounts receivable, suggesting a charge of $200 for sending about 15 invoices per month, and advises that pricing can be scaled based on the client's needs.
Mindmap
Keywords
đĄBookkeeping
đĄQuickBooks Online
đĄNiche
đĄRecurring Revenue
đĄAccounts Payable
đĄAccounts Receivable
đĄCash Management
đĄFinancial Reports
đĄService Packages
đĄTwo-Factor Authorization
đĄDirect Deposit
Highlights
Zach Pascarell has been running his own bookkeeping business for four years.
He has over 60 bookkeeping clients and makes more than $30,000 per month in recurring revenue.
Zach specializes in bookkeeping services using QuickBooks Online, positioning himself as an expert in this software.
His basic package includes categorizing transactions, reconciling accounts, and generating financial reports within QuickBooks Online.
Zach does not offer payroll, tax, or CFO services, focusing solely on bookkeeping.
He charges more than $2,000 per month by going beyond traditional bookkeeping services.
Zach introduces 'cash management' as a way to charge higher fees for bookkeeping services.
In cash management, Zach manages clients' accounts payable and receivable, which is beyond typical bookkeeping tasks.
For accounts payable, Zach pays bills for clients using their money, requiring communication about which bills need to be paid.
Zach recommends using a shared cloud service like Google Drive for managing bills that need to be paid.
He uses clients' business checking accounts to pay bills, avoiding additional software costs.
Zach can also set up two-factor authorization for bill payments, adding a layer of security and control.
For accounts receivable, Zach sends invoices to customers and manages their payment through QuickBooks Online.
QuickBooks Online can automatically send reminders for due invoices, streamlining the process for clients.
Zach charges $500 per month for managing about 100 accounts payable, suggesting a fee of about $5 per bill.
He charges an additional $200 per month for sending about 15 invoices, indicating a potential fee of $100 for 10 invoices.
Zach emphasizes the importance of hands-on management and responsibility in providing advanced bookkeeping services.
Transcripts
let me teach you how you can charge more
than $2,000 per month for just
bookkeeping services my name is Zach
pascarell I have been running my own
bookkeeping business for the past four
years I have over 60 bookkeeping clients
I'm making more than $30,000 per month
just in recurring revenue from my
bookkeeping clients I make these videos
just because I'm passionate about my
bookkeeping business I love talking
about bookkeeping and I love teaching
you how you can start and grow your own
bookkeeping business bu the exact same
way that I did let me start by saying I
don't have a niche at least not a niche
in the traditional sense you can have a
niche in the industry that you work with
maybe you only do bookkeeping for
trucking companies or Real Estate
Investors or restaurants but I have a
niche in the software that I use and the
services that I provide this enables me
to be an expert at bookkeeping and
QuickBooks Online I am so fast and so
good at bookkeeping I only do
bookkeeping I don't do payroll I don't
do taxes I don't do CFO Services I only
offer bookkeeping services but I'm still
able to charge more than $2,000 per
month because I go a little bit above
and beyond traditional bookkeeping
services I'm going to get to that in a
few minutes but first let me lay the
foundation for the actual services that
I provide my basic package just
bookkeeping and I only work with
QuickBooks online so I I have a niche in
the services that I provide and the
software that I use and this enables me
to truly be a QuickBooks Online expert I
can do everything so fast so efficiently
in QuickBooks and that helps me process
a large volume of work which means I can
make a lot of money so my basic services
are just bookkeeping with QuickBooks
online that means I categorize your
transactions I reconcile your accounts
and I generate Financial reports I do
everything inside of QuickBooks Online I
don't work with any other software I
don't provide any other services I
categorize your transactions money
coming in money going out income
expenses assets liabilities I reconcile
your accounts every month so I need your
bank statements and your credit card
statements and your loan statements
every month just to make sure everything
in QuickBooks penny for Penny exactly
accurate and then I generate your
financial reports that's the whole point
of bookkeeping I will send you your
profit and loss on a monthly basis I'll
man manage your balance sheet and then
at the end of the year your profit and
loss balance sheet all accurate all
updated ready to go for your tax
accountant so that you can be super
hands off with your bookkeeping and tax
process now let's talk about how I take
it a step further how you can charge
$22,000 or more for bookkeeping services
I call this cash management I manage
clients accounts payable and accounts
receivable this really goes in line hand
inand with bookkeeping services but it's
far beyond traditional bookkeeping
services what I just described
categorizing transactions I'm only
looking at transactions that have
already occurred so you take your debit
card you go to Home Depot or you go to
the bank and deposit a check that's
money going out in expense money coming
in income but it's already happened with
cash Management Services I'm looking at
money that hasn't moved yet I'm looking
at transactions that haven't occurred
yet so specifically let me break it down
how I do it and how I charge for it
accounts payable and accounts receivable
they're pretty they're pretty similar
but they do have a couple differences
let's start with accounts payable so I
am actually paying bills for my clients
I'm not using my own money obviously I'm
using their money to pay their bills so
the process is pretty straightforward
they need to tell me somehow they need
to communicate with me the bills that
need to be paid so this does require
some work from the business owner or the
office manager or the project manager
somebody on their team needs to tell me
what bills need to be paid so that I can
manage their accounts payable this
happens a couple different ways the
client can set up a Google drive or a
Dropbox or a Microsoft One drive or some
type of cloud and then they can give me
access to that Google Drive and then
they can have a couple folders they
could have bills waiting to be approved
for payment bills approved for payment
bills that need to be paid accounts
payable whatever you want to call it the
client needs to tell me these bills are
okay to be paid
so they can set up a Google Drive and
give me access to it or they can just
email me they can send me emails in real
time hey pay this bill hey pay that bill
that strategy works okay if there are
few bills but as soon as there become
more than three or four bills per week
it can be a little bit difficult to send
individual emails on a daily basis so if
there are more than four or five bills
per week I recommend set up a Google
Drive or a Dropbox shared access between
the bookkeeper and the business owner
and then develop a system for just
somebody on their team telling you as
the bookkeeper which bills need to be
paid but if it's only a couple bills per
week like I said emails work fine once I
get the bills that need to be paid I
enter them into QuickBooks online and
then every week I will run an accounts
payable aging detail report so I'm
entering the bills in real time and then
I will look to see which bills are due
in the next 7 days and then I will pay
all of those bills now how do I pay
bills I don't have a checkbook for my
client like I said I'm not actually
using my own money I'm using the
client's money to pay their bills and I
don't really work with any other
software so I'm not working with
bill.com or I'm not using other accounts
payable management software I'm actually
and I'm also not using QuickBooks online
because they charge $10 every month per
contractor that's incredibly expensive I
actually use use my clients business
checking accounts to pay their bills
most business checking accounts have
either cash management treasury
management or bill pay or some
combination that's actually where I got
the name of these Services cash
management because that's usually what
these business checking accounts call
them on in their online banking system
cash management treasury management bill
pay basically I can pay these people
these vendors contractors subcontractors
I can pay them straight from my client's
business checking account now I need my
own access I need a username I need a
password so that I can access my
client's bank accounts and then we've
already gone through an approval process
so the client already tells me hey these
bills are good to be paid so I enter
them into the business checking account
online treasury management cash
management system and then I can
actually pay these people AC direct
deposit now we can take it a step
further with two Factor
authorization so I can generate the
report inside the business checking
account and then the client the business
owner the office manager the project
manager can actually go in and approve
the payments that I have submitted that
way we can double check the work we have
internal controls and there's there's no
chance of any mistakes happening because
I enter the information and somebody
else approves the information now that
only works if you have their a direct
deposit information so you need the pay
and the vendors account number and
routing number that's not always an
option so we can also electronically
mail checks and that's usually an option
with most business checking accounts all
we need to know is the address of the
paye so I can actually electronically
mail checks straight from my business
checking account to my vendors and
contractors it's a little bit more
expensive it usually costs about 70
cents per check but if you think about
it with a stamp and an envelope printing
the checks it's money well worth it
because you're going to spend at least
70 cents and so much more time
physically mailing these checks a direct
deposit is usually like 5 to 10 cents
per transaction so cheap so easy and it
happen next day so today if I process an
a payment at 3 p.m. it'll arrive in the
in the vendor's bank account the next
day okay so that's how I manage accounts
payable and the way I price it I don't
have an exact model I do know that right
now I have a couple clients who have
about 100 accounts payable per month and
I charge them $500 per month so there's
not an exact science because I don't
have a lot of clients who I do this for
but it is a lot of work it does require
that I'm very Hands-On with these
clients there's a lot of responsibility
involved with paying these bills keeping
up with it making sure everything goes
out on time so this is a more advanced
service so I do charge $500 for 100
bills and then it would obviously go
down or go up depending on the number of
bills that need to be paid on a weekly
or monthly basis but I think about $5
per bill that needs to be paid is
probably a good starting point okay now
let's talk about accounts receivable
it's a very similar process but it's the
exact opposite instead of paying people
now we are sending invoices to customers
and clients and this is much easier but
it's very very important so many
business owners struggle to manage their
accounts receivable so us as bookkeepers
we can come in and we can offer to
handle your clients accounts receivable
that way they can be confident that
everybody is paying on time and if
they're not paying on time we can follow
up with them I use QuickBooks Online to
manage all of my clients accounts
receivable and I also use QuickBooks
Online as a payment processor QuickBooks
Online charges 1% for AC transfers and
3% for credit card transfers which is
usually pretty consistent across the
industry
so this the process is pretty similar if
an invoice needs to be created my
clients will email me hey Zach please
create an invoice I just need to know
basic information the customer's name
the date of the invoice the terms net 30
net 15 do on receipt a description for
the invoice and the amount and then I
also need to know the email address for
the customer if it's a new customer tell
me the email address if it's a
pre-existing customer I should already
have have their email address in the
system that's it that's the only
information I need and then I can email
the invoice directly to the customer or
the client straight from the QuickBooks
account and then the client can pay the
invoice through their email
electronically bank transfer credit card
and then finally in QuickBooks you can
set up automatic reminders so 3 days
after the due date 7 days after the due
date 30 days after the due date
QuickBooks will automatically send
emails straight to the client saying hey
reminder this invoice is due please
submit payment at your earliest
convenience and then finally we can run
an accounts receivable aging report from
QuickBooks you can even set it up on an
automatic email so every Friday An
accounts receivable aging report can get
emailed straight to your client straight
from QuickBook so they can see which
invoices are 30 days overdue 60 days
overdue which invoices are current you
might need to take it a step further and
reach out out directly to the client or
the customer if they haven't paid their
invoice in 30 days but QuickBooks makes
it so simple to manage accounts
receivable you can do it for your
clients I have one client who I send
about 15 invoices per month and I charge
them in additional $200 so invoices do
require a little bit more work than
bills actually maybe not they might be
pretty similar I don't have an exact
pricing structure set up for quoting and
pricing accounts receivable and accounts
payable $500 for a 100 accounts payable
per month seems to be a pretty good
starting point 10 or so invoices per
month for $100 seems to be a good price
point and then you can just multiply it
by that if they have 50 invoices per
month maybe charge them $500 something
like that but I hope this video is
helpful I hope it gives you a different
perspective on some additional
bookkeeping services that you can
provide that way you can charge more
than $2,000 per month for some of your
larger bookkeeping clients
Voir Plus de Vidéos Connexes
How To Pick a Niche For Your Bookkeeping Business
Bookkeeping Q&A (What if I can't reconcile?? +More!)
What I Would Do DIFFERENTLY - Starting My Bookkeeping Business Today
đž Practice BOOKKEEPING before you ever get your first client! | Realistic Bookkeeping
Bookkeeping Basics for Small Business Owners
Zaggle introduces Zoyer!â
5.0 / 5 (0 votes)